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HVG purchases 50 per cent stake in FMC for US$2.78m

Update: May, 25/2015 - 08:14

Hung Vuong Corporation (HVG) bought 2.5 million shares issued by Sao Ta Foods Joint Stock Company (FMC) for a price of VND24,000 (US$1.11) per share. — Photo cafef.vn

HA NOI (VNS) — Hung Vuong Corporation (HVG) bought 2.5 million shares issued by Sao Ta Foods Joint Stock Company (FMC) for a price of VND24,000 (US$1.11) per share.

The investment totaled at VND60 billion ($2.78 million).

HVG stakes in FMC now amounts to 10 million shares, equal to 50 per cent of FMC's chartered capital. The deal will help FMC since it can now call on capital and operation support from HVG.

In the first quarter of this year, FMC recorded revenue of VND504.3 billion ($23.3 million), a decrease of nine per cent over the same period last year. The company's after-tax profit rose by 175.34 per cent to VND11.8 billion ($546,000) in the first three months.

After Friday's session, FMC's share rose by 3.28 per cent to stand at VND25,200.

In contrast, HVG's revenue fell by 16.5 per cent to VND3.12 trillion ($144 million) in the first quarter. The company recorded a net profit of VND50 billion ($2.3 million), a decrease of two-thirds compared to last year.

After the last trading session, HVG share reached its ceiling price of VND18,500. — VNS

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